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A firm is financed with market values of $ 2 9 5 million in risk - free debt and $ 5 7 5 million in

A firm is financed with market values of $295 million in risk-free debt and $575 million in equity. The firms asset beta is 0.93. Assume a risk-free rate of 2.5%, a market risk-premium of 6.2% and a tax rate of 25%. Assume the firms debt beta is 0. What is the firms after-tax weighted average cost of capital? (answer to the fourth decimal place)

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